How To Send Money Using An ACH Transfer

Quick answer

• ACH transfers are a common way to move money between bank accounts in the U.S.
• You can initiate them through your bank’s online portal or mobile app.
• You’ll need the recipient’s bank name, routing number, and account number.
• Transfers can take 1-3 business days to complete.
• Be aware of potential fees, though many are free for consumers.
• Double-check all recipient details to avoid delays or errors.

Who this is for

• Individuals who need to pay bills, send money to family, or transfer funds between their own accounts.
• Those looking for a secure and cost-effective alternative to wire transfers or paper checks.
• Anyone who wants to understand the basics of electronic fund transfers in the U.S. banking system.

What to check first (before you act)

Your goal and timeline

Before sending money, clarify why you’re doing it and when the funds need to arrive. Is it a one-time payment, a recurring bill, or a personal transfer? Knowing your timeline helps determine if an ACH transfer is the best method, especially if you need funds to arrive by a specific date.

Current cash flow

Review your bank balance and upcoming expenses. Ensure you have enough funds in your account to cover the transfer amount, plus any potential fees. Overdrawing your account can lead to significant charges and financial stress.

Emergency fund or safety buffer

If this transfer is for a non-essential purpose, consider if it impacts your emergency savings. It’s generally wise to maintain a healthy emergency fund before making discretionary transfers, especially large ones.

Debt and interest rates

If you’re considering an ACH transfer to pay off debt, compare the cost of the transfer (if any) against the interest you’ll save. For high-interest debts, prioritizing repayment is often financially beneficial.

Credit impact

While initiating an ACH transfer itself doesn’t directly impact your credit score, the underlying reason for the transfer might. For example, making a late payment due to a failed or delayed transfer could negatively affect your credit. Ensure timely payments are made.

Step-by-step: How to give someone ACH

1. Gather Recipient Information:

• What to do: Obtain the recipient’s full legal name, their bank’s name, the bank’s routing number, and their bank account number. For business accounts, you may also need the account type (checking or savings).
• What “good” looks like: You have all the necessary details, verified for accuracy.
• Common mistake and how to avoid it: Using an incorrect routing or account number. Always double-check these numbers, as they are critical for the transfer to reach the correct destination.

2. Log In to Your Bank’s Online Portal or App:

• What to do: Access your online banking account through your bank’s website or their mobile application.
• What “good” looks like: You are securely logged into your account.
• Common mistake and how to avoid it: Using an unsecured Wi-Fi network for sensitive banking activities. Stick to trusted networks or your mobile data.

3. Navigate to the Transfers or Payments Section:

• What to do: Look for options like “Transfers,” “Payments,” “Bill Pay,” or “Send Money.” The exact wording varies by bank.
• What “good” looks like: You’ve found the area where you can initiate new electronic fund transfers.
• Common mistake and how to avoid it: Clicking on suspicious links or ads that mimic your bank’s login page. Always go directly to your bank’s official website or app.

4. Select “External Transfer” or “Add New Account”:

• What to do: If you are sending money to an account at a different bank, you’ll typically need to link that external account first, or select an option for external transfers.
• What “good” looks like: You are in the process of setting up a transfer to an account outside your current bank.
• Common mistake and how to avoid it: Mistaking this for an internal transfer between your own accounts at the same bank. Ensure you select the correct option for sending money to someone else.

5. Enter Recipient Account Details:

• What to do: Input the routing number, account number, and account type for the recipient’s bank account. You may also need to confirm the recipient’s name.
• What “good” looks like: All fields are accurately populated with the information you gathered in Step 1.
• Common mistake and how to avoid it: Typos in the routing or account number. Some banks offer a verification step, but it’s crucial to enter them correctly from the start.

6. Specify Transfer Amount and Date:

• What to do: Enter the exact dollar amount you wish to send. Choose the date you want the transfer to be initiated.
• What “good” looks like: The amount is correct and the initiation date is appropriate for your timeline.
• Common mistake and how to avoid it: Entering the wrong amount or scheduling the transfer for a date that is too late for the recipient’s needs.

7. Review and Confirm:

• What to do: Carefully review all the details: recipient name, bank name, routing number, account number, transfer amount, and initiation date.
• What “good” looks like: You’ve verified every piece of information and are confident it’s accurate.
• Common mistake and how to avoid it: Rushing through the confirmation screen. This is your last chance to catch errors before the money is sent.

8. Initiate the Transfer:

• What to do: Click the “Submit,” “Confirm,” or “Send” button to start the ACH transfer.
• What “good” looks like: You receive a confirmation message or reference number from your bank.
• Common mistake and how to avoid it: Not saving or noting down the confirmation number. This number is important for tracking the transfer if there are any issues.

9. Monitor Your Account and Notify Recipient:

• What to do: Keep an eye on your bank account to ensure the funds are debited. Inform the recipient that the transfer has been initiated and when they can expect to receive the funds.
• What “good” looks like: The money leaves your account as expected, and the recipient is aware of the incoming funds.
• Common mistake and how to avoid it: Assuming the transfer is complete without confirmation. Follow up if the funds haven’t debited from your account or arrived in the recipient’s account within the expected timeframe.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Incorrect Routing Number	Transfer is rejected, delayed, or sent to the wrong bank.	Double-check the routing number with the recipient and your bank.
Incorrect Account Number	Transfer is rejected or sent to the wrong account.	Verify the account number character by character.
Sending to a Closed Account	Transfer will be rejected, causing delays and potential fees.	Confirm with the recipient that the account is active and valid.
Insufficient Funds	Transfer may be rejected, or your bank may charge overdraft fees.	Ensure your account balance is sufficient for the transfer amount plus any fees before initiating.
Not Confirming Details	Errors lead to delays, rejections, and potential loss of funds.	Always review all details on the confirmation screen before submitting.
Ignoring Transfer Limits	Your transfer may be rejected or only partially processed.	Check your bank’s daily or per-transaction limits for ACH transfers.
Not Considering Processing Time	Payments may arrive late, incurring penalties or late fees.	Understand that ACH transfers take 1-3 business days; plan accordingly for bill payments or time-sensitive transfers.
Not Having a Confirmation Number	Difficulty tracking or resolving issues if the transfer goes awry.	Save or screenshot the confirmation page and note the reference number provided by your bank.
Assuming the Transfer is Instant	Can lead to missed deadlines and frustration for both parties.	ACH transfers are not instant like some other payment methods; plan for the standard processing time.
Not Verifying Recipient’s Bank Status	Using an outdated routing number for a bank that has merged or changed.	A quick online search for the bank’s current routing number can prevent issues.

Decision rules (simple if/then)

• If you need to send money urgently (within the same day), then an ACH transfer might not be the best option, because ACH transfers typically take 1-3 business days.
• If you are sending money to a family member for the first time, then verify their bank account and routing numbers carefully, because errors can lead to significant delays.
• If the amount you need to send exceeds your bank’s daily ACH limit, then you may need to break it into multiple smaller transfers over several days or use a different method, because exceeding limits will cause rejection.
• If you are paying a bill that has a strict due date, then initiate the ACH transfer at least 3-5 business days before the due date, because processing times can vary.
• If you are sending a large sum of money, then consider the security of the platform you are using and your bank’s fraud protection policies, because larger amounts carry higher risks.
• If you are unsure about any part of the process, then contact your bank’s customer service, because they can guide you through their specific system.
• If you are transferring funds between your own accounts at different banks, then you might be able to link them for easier transfers, because many banks offer this convenience.
• If the recipient has provided you with a voided check, then use the routing and account numbers printed on it, because this is a reliable source of information.
• If you receive an error message during the transfer process, then do not assume it went through; contact your bank for clarification, because errors often indicate a problem that needs immediate attention.
• If you are sending money internationally, then ACH transfers are not suitable; you will need to use a wire transfer or an international money transfer service, because ACH is for domestic U.S. transfers only.

FAQ

What is an ACH transfer?

ACH stands for Automated Clearing House. It’s an electronic network used by U.S. financial institutions to process large volumes of credit and debit transactions in batches. This includes direct deposits, bill payments, and person-to-person transfers.

How long does an ACH transfer take?

Typically, ACH transfers take 1-3 business days to complete. This timeframe includes processing by both the sending and receiving banks.

Are ACH transfers free?

Many ACH transfers initiated by consumers through their bank’s online portal or app are free. However, some banks may charge a small fee, especially for expedited transfers or business accounts. Always check with your bank.

What information do I need to send an ACH transfer?

You’ll need the recipient’s full legal name, their bank’s routing number, and their bank account number.

Can I cancel an ACH transfer?

It can be difficult or impossible to cancel an ACH transfer once it has been initiated, especially if it has already entered the processing system. Contact your bank immediately if you need to attempt a cancellation.

What’s the difference between ACH and a wire transfer?

Wire transfers are typically faster, often same-day, and can be used for international transactions. They are also generally more expensive and may have higher security protocols. ACH transfers are batch-processed, slower, and primarily for domestic U.S. transactions, usually at a lower cost.

Can I send money to a savings account using ACH?

Yes, you can send money to both checking and savings accounts using ACH, provided you have the correct account and routing numbers.

What if the ACH transfer fails?

If an ACH transfer fails, the funds will usually be returned to your account. Your bank will likely notify you, and you may incur a fee. You’ll need to identify the reason for the failure (e.g., incorrect account number, insufficient funds) and resubmit the transfer.

What this page does NOT cover (and where to go next)

• International Money Transfers: ACH is a U.S. domestic system. For international transfers, you’ll need to explore services like wire transfers or specialized international money transfer platforms.
• Real-time Payments (RTP): While ACH is batch-processed, newer systems like The Clearing House’s RTP network offer near-instantaneous transfers. Research these if speed is paramount.
• Peer-to-Peer (P2P) Payment Apps: Services like Venmo, PayPal, and Zelle use various underlying methods, sometimes including ACH, but offer a simplified user interface for sending money.
• Business-Specific ACH Services: While the principles are similar, businesses often use more advanced ACH origination software and services with different fee structures and compliance requirements.
• Fraud Prevention Best Practices: This article focuses on the mechanics of sending money. For comprehensive advice on protecting yourself from financial fraud, consult resources on cybersecurity and fraud detection.